Contact UsHow much federal taxes should I have withheld from a $50,000 cash prize. Also, how much state tax should I withhold? I live in Upstate NY.
My e-mail address is Eagles4579@aol.com
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John Stancil
The answer depends on your total taxable income and your filing status. Federal taxes run from 10 to 39.6 percent.the New York rate would be between 4 and 8.82 percent.
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510 weeks ago
Question Owner
I was told this, is this right.
The first 10,000 is not taxed at all
The next 8,925 is taxed at 10% = 895.50
The next 27,325 is taxed at 15% = 4098.75
The remaining 3750.00 is taxed at 25% = 937.50
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510 weeks ago
The first 10,000 is not taxed at all
The next 8,925 is taxed at 10% = 895.50
The next 27,325 is taxed at 15% = 4098.75
The remaining 3750.00 is taxed at 25% = 937.50
John Stancil
That would be correct for 2013 if you have no other income and are single with no dependents taking the standard deduction. All the amounts increase slightly for 2014 due to inflation adjustments in the standard deduction, dependency exemptions, and the bracket amounts. The rates are the same.
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510 weeks ago
Question Owner
Okay, so why is the first $10,000 not taxed.............So if I told them to withhold $6000 for federal then when April of 2015 comes I would not owe any taxes?
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510 weeks ago
John Stancil
The first $10,000 of your income not taxed due to the standard deduction and the personal exemption. If you have other income, this would be taxed on top of the other income, at higher rates. Since you are married, the tables I gave you do not apply, they are tables for singles. The rate tables for married filing jointly can be seen here www.forbes.com/sites/kellyphillipserb/2013/10/31/irs-announces-2014-tax-brackets-standard-deduction-amounts-and-more/ So the amount of taxes on this prize would be less than $6,000 assuming no other income.
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509 weeks ago